Stream Finance Loses $93M, Triggers DeFi Market Instability

2025-12-16 16:25

Stream Finance, a decentralized finance (DeFi) protocol, has suffered a loss of $93 million in user funds due to actions by an external fund manager. This incident has led to a suspension of all deposits and withdrawals on the platform. The loss has caused its stablecoin, xUSD, to plummet by 77%, affecting other platforms such as Morpho, Euler, and Silo. The financial turmoil was revealed through a lawsuit indicating that Ryan DeMattia, the fund manager, used the funds to cover a personal margin call. The xUSD's recursive lending structure has further exposed $285 million in debt across the DeFi market, exacerbating the instability.

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